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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Freddie Forte who wrote (24705)	10/9/1998 9:54:00 AM
From: David Colvin	Read Replies (1) \| Respond to of 27968

Freddie, Some more Guessing on my part: o Shares owned by Arif: - End of 1997.....11 million - Now................40 million (mostly restricted...this is what he said in conference call) o Shares in the float - End of 1997.....10 million - Now................32 million o Total shares outstanding - End of 1997.....21 million - Now................72 million The above assumptions could be very close to the truth. However, you may have just hit on another possibility when you said Did Arif's daughter get a boatload of shares? On that black day during the #$&@@ conference call when Arif announced that there were 70 million shares outstanding and that he owned about 40 million shares "most of which were restricted", he didn't say anything about some other insider (such as his daughter) also getting a windfall of new shares. Maybe she did and he just "forgot" to mention that important fact...then she sold 22 million shares into the open market (float). This is all conjecture of course, because Arif faxed Lonnie or Leroyt the number of shares in the float and the number on that fax was either 24 million or 28 million. If, say, the 28 million number is correct, then that leaves 4 million shares unaccounted for, and may have went to his daughter. Personally, I believe that if the total outstanding shares right now is 72 million, the total in the float is 32 million, and FAHM or someone affiliated with FAHM sold them into the float while conducting weekly "controlled" conference calls where the only questions asked were those with "great news" responses. Question...is it legal for an insider to simply issue himself shares just because he feels like it? Even though this isn't a reporting company, it is publicly traded. Isn't there some kind of SEC rule prohibiting this behaviour for any publicly traded company? Selling shares for acquisitions is one thing....issuing shares to oneself is another. Dave